SB231 Alabama 2010 Session

Summary

Primary Sponsor

Larry MeansMayor

Democrat

Session

Regular Session 2010

Title

Motor vehicles, new and used vehicles clarified, titles, fees for certain records further provided for, exemption from titling of vehicles authorized, inspections, alternative method of lien release authorized when lienholder no longer in business, Secs. 32-8-2, 32-8-6, 32-8-31, 32-8-32, 32-8-36, 32-8-64 am'd.

Summary

SB231 updates Alabama's motor vehicle titles and records rules by lowering some fees, adding new fees, clarifying definitions, allowing titling exemptions, adjusting inspection rules, and improving lien-release processes when a lienholder goes out of business.

What This Bill Does

Clarifies definitions of new vehicle and used vehicle and broadens how records related to titles and registrations are handled. Reduces the motor vehicle title records fee from $15 to $5 when records are provided electronically or as a printout of an electronic record; creates a $5 registration record fee and allows the Department to set fees for records obtained through the national motor vehicle information system, plus determine payment methods, with privacy protections for certain records. Allows the department to exempt certain vehicles from titling if it is no longer cost-effective to title them, and removes the requirement for license plate issuing officials to physically inspect certain vehicles if they have been registered in the state in the current or previous two calendar years. Standardizes bond amounts for titles issued under surety bonds and authorizes alternative lien-release methods when the lienholder is no longer in business, plus establishes procedures for releases of security interests and related paperwork.

Who It Affects

• Vehicle owners and registrants in Alabama who may see lower or new fees for records, potential titling exemptions, and privacy protections.
• Dealers, lienholders, and DMV-designated agents who would be subject to standardized bond amounts, revised lien-release procedures for inactive lienholders, and new or adjusted record-keeping and processing fees.

Key Provisions

• Clarify definitions of new vehicle and used vehicle.
• Reduce title-records fee from $15 to $5 for electronic records or printouts; establish a $5 registration-record fee and specify how the fee is distributed between the State General Fund and the Motor Vehicle Division for processing improvements.
• Department may set fees for records obtained through the NMVI system and determine payment methods; establish privacy protections and uniform handling procedures for disclosures.
• Authorize exemptions from titling when cost-effectiveness warrants, to avoid titling some vehicles.
• Eliminate or modify the requirement for license plate issuing officials to physically inspect certain vehicles when registered in the state within the current or prior two calendar years.
• Standardize bond amounts for titles issued under surety bonds and permit uniform bond amounts for vehicles.
• Provide alternative methods for releasing security interests when a lienholder is no longer in business; require bonds and releases to be filed and noted on records.
• Establish procedures for releases of security interests and transfers of certificates upon satisfaction of liens; require timely mail or delivery of releases and certificates.
• Effective date: October 1, 2010.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles